RIYADH, Dec 28 (Reuters) - Saudi Arabia's General Authority
for Civil Aviation (GACA) has awarded carrier licenses to Gulf
Air and Qatar Airways, the Saudi state news agency (SPA)
reported on Friday, the first foreign airlines to win such a
license in the kingdom.
The license, which 14 companies had applied for, is to
operate both local and international flights, GACA has
previously said.
Until now only the national carrier Saudi Airlines and
budget airline National Air Services (NAS) have serviced a
domestic market of around 27 million people.
With Saudi Arabia's price cap on domestic flights, private
airlines have struggled with their profit margins.
Saudi Airlines, which is undergoing a slow privatization
process, receives fuel at subsidized prices unlike private
carriers, allowing it to offset the limits of the ticket cost
ceiling.
(Reporting by Angus McDowall, Writing by Raissa Kasolowsky;
Editing by Jon Boyle)